The 2025-26 Budget: Overview of the Governor's Budget

Jan 13, 2025 - New Tax Expenditures of $150   Million. The Governor ’s budget includes some revenue proposals, which would expand existing tax expenditures and create new ones. This includes increasing the existing film tax credit from $330  million to $750  million per year and excluding some military retirement income from taxation.
https://lao.ca.gov/Publications/Report/4951

The 2025-26 Budget: Governor’s Office of Business and Economic Development

Mar 18, 2025 - Recent evidence from academic research has found that the California Competes tax credit is fairly effective at increasing employment and providing an economic benefit to the state, especially relative to other tax expenditure programs in California and elsewhere.
https://lao.ca.gov/Publications/Report/5018

The 2025-26 Budget: State Departments’ Operational Efficiencies (Control Sections 4.05 and 4.12)

Feb 19, 2025 - Affected Funding Sources Expenditures from what specific “other funds, ” if any, are expected to be reduced and by how much? What effect, if any, will identified savings to special funds expenditures have on fees and taxes levied to support the funds?
https://lao.ca.gov/Publications/Report/4975

Improving Legislative Oversight of Emergency Authorities

Apr 10, 2025 - California Constitution Establishes Core Powers of the Legislature Legislature Responsible for Enacting Laws, Appropriating Funds, and Levying Taxes. The California Constitution establishes three kinds of power exercised by the state government: legislative, executive, and judicial.
https://lao.ca.gov/Publications/Report/5029

The 2025-26 Budget: Department of Real Estate

Mar 19, 2025 - As proposed, the Real Estate Fund was projected to end 2025-26 with a negative fund balance, as total spending ($74.9  million, which includes expenditures related to statewide administrative costs and BCSH) would exceed total resources ($73.2  million) by about $1.7  million.
https://lao.ca.gov/Publications/Report/5019

The 2025-26 Budget: CDTFA’s Tobacco Programs [Publication Details]

Feb 14, 2025 - In this post, we provide information to support the Legislature’s oversight of the Department of Tax and Fee Administration’s (CDTFA’s) tobacco programs. In particular, we offer background information; comments on revenue trends, CDTFA’s enforcement activities, and the AB 3218 budget change proposal (BCP); and questions that budget subcommittees may wish to ask about these issues.
https://lao.ca.gov/Publications/Detail/4966

The 2025-26 Budget: CDTFA’s Tobacco Programs

Feb 14, 2025 - CDTFA runs three tobacco-focused programs: The Cigarette and Tobacco Tax Program administers a $2.87 per pack tax on combustible cigarettes and a 53  percent tax (adjusted annually) on the wholesale cost of other tobacco products, such as e-cigarettes, cigars, and chewing tobacco.
https://lao.ca.gov/Publications/Report/4966

The 2025-26 Budget: EDDNext [Publication Details]

Feb 25, 2025 - These include: (1) remove extended encumbrance and expenditure deadlines; (2) add a notification period for the Joint Legislative Budget Committee to review final project documentation for the proposed Integrated Case Management System / Integrated Data Management IT project; (3) require the California Department of Technology to publish oversight reports every other month; and, (4) require EDD to provide quarterly legislative meetings.
https://lao.ca.gov/Publications/Detail/4985

The 2025-26 Budget: Office of Emergency Services—Request for Reappropriation of Law Enforcement Mutual Aid Fund Resources

Feb 24, 2025 - Under the proposal, these funds would be available for expenditure until June 30, 2029. (Unspent funds from 2022-23 and 2023-24 have already reverted.) Assessment Administration Seeks Additional Time in Pilot Phase.
https://lao.ca.gov/Publications/Report/4982

The 2025-26 Budget: Department of Financial Protection and Innovation

Apr 3, 2025 - The independent assessment of DFPI ’s financial condition identified annual salary adjustments (agency-wide) and start-up costs for new programs as the main sources of increased expenditures at DFPI.
https://lao.ca.gov/Publications/Report/5025